Dreaming of buying a home in Kentucky but worried about the down payment? You're not alone. Fortunately, several loan programs and grants are available that can help you purchase a home with zero money down. This guide walks you through the most effective ways to make that dream a reality in 2025.
✅ Zero Down Payment Options for Kentucky Buyers
🏡 USDA Loans
- No down payment required
- Must buy in eligible rural areas
- Income limits apply (115% of median income)
- Credit score typically 640+
🎖️ VA Loans
- 100% financing for veterans, service members, and eligible spouses
- No mortgage insurance
- Lenient credit requirements (often 620+)
🏠 FHA Loans + Down Payment Assistance (DAP)
- Minimum 3.5% down, often covered by assistance programs
- Minimum credit score: 580
- Accepted grants and gift funds to reduce upfront costs
🏦 Kentucky Housing Corporation (KHC) Assistance
💰 Down Payment Assistance Program (DAP)
- Up to $10,000 in assistance
- 10-year term at 3.75% interest
- Used with FHA, VA, USDA, and Conventional loans
🎉 Welcome Home Grant
- Available annually for qualified buyers
- Free grant money to cover closing and down payment costs
📝 Steps to Qualify for No Money Down Programs
- Check Eligibility: Income, location, military status, credit score
- Get Pre-Approved: Start with a trusted mortgage lender
- Take a Homebuyer Education Course: Required for most grants
- Apply for Assistance: Work with your lender to package loans + grants
- Find a Home: Ensure the property qualifies for the loan program
📊 No Money Down Steps
❓ Frequently Asked Questions
Can I use multiple programs together?
Yes! You can layer KHC down payment assistance with FHA, VA, or USDA loans to cover costs.
What if I have bad credit?
FHA loans allow scores as low as 580 with 3.5% down. With a 620+ score, you can qualify for most no-money-down options.
Do I have to repay down payment assistance?
Some are forgivable if you stay in the home a certain number of years; others require repayment. Your lender will guide you.
📞 Call to Action
Ready to buy your Kentucky home with no money down? Contact Joel Lobb, Mortgage Loan Officer, for a free consultation and same-day pre-approval.
📧 kentuckyloan@gmail.com
📞 Call/Text: (502) 905-3708
🌐 www.mylouisvillekentuckymortgage.com
NMLS #57916 | Equal Housing Lender | Subject to credit approval and program availability. Not a commitment to lend. Visit nmlsconsumeraccess.org for more information.
